I had this and I had a raspberry PI-hole as a DNS, once I disabled the PI-hole it started downloading, looks like if there are connectivity issues, the default behaviour is to restart.
Maybe try to change your DNS on your router or try the hotspot suggestion above.
This may not apply to you but I had the same issue on my Quest 1. I recently changed to a WiFi Mesh system and even though I had connected and had access to the internet from my Quest, it would not download the newest version (V20). Going to the settings on my router, I changed the access to be non-mesh for just the Quest and then suddenly it properly downloaded. On my Quest 2 I have not changed it to be non-mesh but it already had the latest version so when the next version comes out I'll have to see how it works.
Hi - Just unboxed and tried to set up the Oculus Quest 2 and everything went ok until we tried to perform the first update.
Went through to the update screen and it just stuck on 0% didn't move, checked the battery life it was ok. Waited 30 mins still no good then did a factory reset setup again still stuck. Was going to going pack it up and send back after searching for support answers, youtube etc and didn't want to sideload.
Tried one last thing we use SKY Broadband and have been having trouble with accessing some websites and services. Went on to their internet protection product called Broadband Shield (access it via your Sky Account) switched the settings from PG to disable and clicked save.
Went back to the start screen and the immediately the blue bar started to load up - have it working now.
Make sure your internet provider is not blocking your access or your Security Software.